CPA Marketing Costs Versus Profits

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Hopefully, you’re not doing CPA marketing just for the heck of it, right?

You’re in it for the money, and that’s the truth at the end of the day, but out of all the strategies you use to make money, some of them may have costs to begin with. It will at least cost you your time (which is valuable) to run CPA campaigns, so whether it costs you time or money, there is the constant of some sort of cost to your campaigns to eventually lead you to profits.

Profits don’t necessarily mean just net income, however. To get the best idea of how well a campaign or offer will work out for you, you have to consider the costs to implement versus the expected profits. Once you subtract the costs of the campaign from the gross income you will arrive at your profit potential, but you still might wonder how much net income you can make once you run the campaign. There are a few ways to arrive at a more accurate estimate, especially if you have an understanding of your traffic (if it’s unique to you) and the conversion rates for that traffic.

First, let’s have a look at your potential costs to put together a CPA campaign.

Potential Costs

In the event that you take a stab at utilizing a PPC campaign with a CPA offer, then you will have upfront expenses to purchase your traffic. You will also need to invest time and energy looking into Google keywords and deciding the normal activity for the essential words that you pick. A simple approach to do this is by utilizing the Google Keyword Planner.

This convenient tool gives you a chance to make sense of the average searches per day for the keyword(s) you’ve chosen so you can then place it into the estimator. Bear in mind to pick the country to which your offer will be focused on.

Click “Get Ideas” and see what appears. The estimator will create a rundown demonstrating your essential words and the normal searches every day for every one. You can even sort the rundown so that the higher search volume ones appear first.

It’s also important to consider the competition, as this affects the cost of advertising depending on the keyword.

Potential Net Income

Since you have this vital bit of data, it is less demanding to not just make sense of what you are about to pay for a PPC campaign; but also, by comparing this with the EPC figures provided by the CPA network for any given offer, you will have a better idea of what you can potentially gain.

Costs here are going to rely upon what you are willing to spend for utilizing specific keywords on particular campaigns, and that is totally up to you as the publisher to choose.

How about we accept for the time being that you discover a CPA offer worth $10 per click and you do research on keywords to utilize it in a PPC to CPA campaign. You discover a few keywords that offer a traffic tally of 100 clicks for each day. The potential net income would be $1,000 per day!

Obviously, not every day is going to be Christmas, but now you have a better idea of what the maximum would be on the off chance that you implemented a campaign for this offer. If you decide that you are going to run this for a 30 day period, the most you can make is $30,000.

Potential Profits

On the other hand, to run a 30 day campaign on Adwords, you may wind up burning through $1/click for your campaign, perhaps restricting it to 100 clicks. That is $100 every day. In the event that you convert at 20%, you may get 20 conversions a day, for an average of $200 every day. Be that as it may, you burned through $100 every day on clicks so your potential profit is more like $100 every day. In this situation your potential profits may wind up being only $3,000 for the month.

On the other hand, you realize that the more people you give the chance to see on your ads the more your ads will convert, so its sensible to believe that your number of conversions will go up if the quantity of exposure to your ad goes up. Hence, you can raise your every day limit of the amount you need to spend for a campaign. In the event that you get more conversions you can create more profit, however you additionally spend all the more in expenses, as well.